Have you ever wondered how seafarers can send extra funds beyond their regular allotments? The Master’s Payment Order (MPO) is the answer.
Since crew members at sea have no access to banking services, the MPO allows seafarers to send money without visiting a bank or remittance center.
It’s a convenient method, and if your ship doesn’t offer this service, check your employment contract— it’s there, and it’s free!
What is an MPO or Master’s Payment Order?
A Master’s Payment Order, or MPO, is a method by which seafarers send extra money from onboard to any Philippine bank account.
Some companies may use a different term, such as “extra or special allotment,” but the concept remains the same.
Through the MPO, the ship’s captain requests that the company deposit a specified amount into the bank account of the seafarer’s choice.
How Does MPO Work?
An MPO is a practical solution for seafarers to access their funds in US Dollars held by the company, which are not directly available in their personal bank accounts.
Here’s a step-by-step breakdown of how the MPO process works:
1. Scheduled Allotment
After regular allotments are disbursed, the Master initiates the special allotment process for extra funds.
2. Voluntary Process
Participating in the MPO is optional. Seafarers can skip it if they don’t need to send extra funds home.
3. Filling Out the MPO Form
Those who wish to use the special allotment will need to provide specific information on the form. This includes:
- Your name and rank
- The recipient’s name
- The recipient’s bank name
- The recipient’s bank account number
- The amount to be transferred
4. Review and Confirmation
Once you complete the form, double-check all the details for accuracy before signing it.
5. Submission to the Company
After signing, the captain will forward the finalized list of Master’s Payment Order requests to the company.
6. Fund Transfer
Upon receiving the signed MPO, the company processes the request and disburses the specified amounts to the designated recipients.
Benefits of MPO
- Convenient Access to Funds
- Support for Families
- Flexible Participation
- Streamlined Process
- No Fees Involved
- Secure Transaction
- Quick Transfers
- Transparency and Control
Limitations of Master’s Payment Order
As one of the ways seafarers send extra funds to their family, it does have limitations.
Here are some of them:
- Only made once a month since your company shoulders all the administrative and banking fees.
- Currency limitation is only in USD, but it will be converted to your account currency.
- Minimum/ maximum transfer amounts are $50 and not greater than your balance, respectively.
- Processing time: While faster than waiting to arrive at port, the payment could still take days.
- Subject to Company Policy: One of my companies phased this out by sending all of our balances to our fixed allotment accounts.
- Technical Problems: There could be problems in the company or the bank that will delay the process.
Frequently Asked Questions:
Q: Why do seafarers send special allotments?
A: The fixed monthly allotment may not be enough for their families; hence, extra cash is needed.
Q: Is the Master’s Payment Order only applicable to Filipino seafarers?
A: Other nationalities are also provided with means for extra allotments.
Q: How much can I send?
A: You can send any amount not greater than your current balance.
Q: Up to how many recipients can I send to?
A: Depends on the company, but usually, 1 to 2. Others allow up to three recipient accounts.
Q: What if there are emergencies at home?
A: Aside from extra allotments, the captain can also request emergency allotments.
Q: Can I send a special allotment to my own bank account?
A: Yes!
Q: Can I send an extra allotment to my scholars?
A: You can send an MPO to anyone with a bank account.
Q: Will my wife know about it?
A: She won’t, but she will!
May the winds be in your favor.